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The Future of Change Management and Why it Matters to Project Managers Presented by Catherine Smithson May 2017
Introducing Being Human • Founded in 1993 • Our mission: develop change-capable people and organisations so they achieve the benefits of change.
• Prosci Primary Affiliate Australia and New Zealand.
2
Getting back to Normal… it’s a town in Illinois USA.
Prosci by the numbers
3
Topics
1. The three ages of Change Management 2. A new business case 3. What does the future hold and why it
matters to Project Managers
4
The three ages of Change Management
5
1st age – Warm and fluffy stuff
• Good intentions • Strong people focus • Often located in L&D, HR, OD • Many different approaches • Little partnership with PMs • Fire fighters
6
2nd age - Optional extra
• Focus on project success • Use of standard methodology and tools
• Located in projects • Partnerships with PMs • Pro-active • But …. LIFO syndrome
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3rd age - Key success factor with PM • Strong focus on project benefits and
outcomes • More recognition of value-add • Trusted advisor role • Targeted and tailored • Integration with other business
disciplines
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Enabling vs employee facing roles
9
Bigger Change
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Faster Change
More Complex Change
More Cross Functional
Change is the new “business as usual”
Most executives recognise the need for embedding change capability
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76% Our ability to adapt is a key
source of competitive advantage.”
PriceWaterhouseCoopers 2008
90% “Organisational agility is
critical to business success.” McKinsey 2009
37% 45%
52% 61% 65%
Level 1 Level 2 Level 3 Level 4 Level 5
Project success rate by maturity level:
Organisations with higher Change Management maturity have higher project success rates
Prosci 2016 Best Practices in Change Management Benchmarking Report. 1120 participants in 56 countries. Prosci copyright 2016 c
Application growing at the project level
14
of organisations apply a Change Management
methodology
of organisations applying Change Management
across the organisation
Prosci 2016 Best Practices in Change Management Benchmarking Report. 1120 participants in 56 countries. Prosci copyright 2016 c
Strong integration with Project Management
15
Percentage of participants who integrated Project Management and Change Management
77%
20%
3% 0%
20% 40% 60% 80%
100%
Yes No Don't know
Integration makes an impact on achieving project objectives
58% 42%
0%
50%
100%
Integrated Did not integrate
Prosci 2016 Best Practices in Change Management Benchmarking Report. 1120 participants in 56 countries. Prosci copyright 2016 c
Awareness that successful change is leader led
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Projects with effective Sponsorship are three times more likely to achieve objectives
than those without
Prosci 2016 Best Practices in Change Management Benchmarking Report. 1120 participants in 56 countries. Prosci copyright 2016
Following the lead of Project Management
• Body of Knowledge/Best Practices • Professional Associations • Accreditations and Education • Methodology and Tools • Dedicated practitioners • Evidence to demonstrate ROI
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A new business case for Change Management
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Organisations change for a reason
Performance Performance > © Prosci Inc. All rights reserved www.change-management.com
Current state
Transition state
Future state
Future
Implementing an ERP Installing Electronic
Medical Records
Documenting and optimising business processes
Move to a new physical location
We tend to focus on change at the organisational level
© Prosci Inc. All rights reserved www.change-management.com
Current Transition Future
T C F
C C C C C C C C C C
C C C C C C C C C C C C C C
T T T T T T T T T
T T T T T T T T T T T T
F F F F F F F
F F F F F
F F F F
T
T T
F F
F F
F
F
F F
Ultimately requires individuals to move from their own current to their own future state
An organisational move to a future state
© Prosci Inc. All rights reserved www.change-management.com
Transition
T
Current Future
C C C C C C C C C C
C C C C C C C C C C C C C C C
T T T T T T T T T
T T T T T T T T T T T T
F F F F F F F
F F F F F F
F F F F
T
T T
F F
F F
F
F
F F
The true unit of change is the individual
© Prosci Inc. All rights reserved www.change-management.com
The Swiss Cheese Future State
Transition Current Future = Benefits
Current Future Transition
23 © Prosci Inc. All rights reserved www.change-management.com
= ?
M T W R F
An email on Monday for training on Tuesday for launch on Wednesday is NOT the way to prepare and equip individuals to successfully change
© Prosci Inc. All rights reserved www.change-management.com
Results and outcomes depend on employee adoption and usage Solution must be: • Designed • Developed • Delivered
and • Embraced • Adopted • Used
25
Future
Effectiveness = Quality x Acceptance General Electric – 1980s
© Prosci Inc. All rights reserved www.change-management.com
The unified value proposition
Solution is designed, developed and delivered
effectively (Technical side)
Solution is embraced, adopted and utilised effectively
(People side)
+
Complementary disciplines with a common objective
Project management
Change management
Current Transition Future Current Transition Future
© Prosci Inc. All rights reserved www.change-management.com
“People side of change” is about closing the gap
Requirements Results Outputs Outcomes
Specifications Sustainment Installation Realisation Solutions Benefits
*
* Daryl Conner
© Prosci Inc. All rights reserved www.change-management.com
The data tells the story: Change Management drives results
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Change Management increases success rates by a factor of 6
Change Management drives staying on schedule
29
Per
cent
age
of re
spon
dent
s th
at m
et o
r ex
ceed
ed
proj
ect o
bjec
tives
30
Change Management drives staying on budget
Per
cent
age
of re
spon
dent
s th
at m
et o
r ex
ceed
ed
proj
ect o
bjec
tives
How well are individuals performing compared to the level expected in the design
of the change?
How many employees (of the total population) are demonstrating “buy-in” and are using the new solution?
How quickly are people up and running on the new
systems, processes and job roles?
Speed of Adoption Ultimate Utilization Proficiency
3 People Side Factors Determine results from change
© Prosci Inc. All rights reserved www.change-management.com
Adoption contribution
Installation contribution
Adoption contribution Installation contribution
Adoption contribution
Installation contribution
How much of our expected results and outcomes depends on adoption and usage?
Future Adoption
contribution Installation contribution
20% 50% 80%
Adoption Contribution = People Dependency of ROI
None All High Low Medium
Portion of benefit that depends on
individual transitions (CMROI)
© Prosci Inc. All rights reserved www.change-management.com
Two questions to put Change Management on the agenda
1. What is the approx percentage of project benefits that are dependent on people adopting & using the change? 2. What is the approx % of focus & resources on the project are dedicated to ensuring people adopt the change and use it proficiently?
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A new definition
Preparing, equipping and supporting individuals to adopt and
use the change so organisational benefits are achieved
What does the future hold?
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1. Embedding Change capabilities into organisational DNA
2. Change as everyone’s
job
36
Single view of change – air traffic control for all Project and BAU change
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The partnership with Project Management • Alignment and integration • Resourcing and roles • PMs as advocates for
investing in Change Management
• Closing the gap
38
Requirements Results Outputs Outcomes
Specifications Sustainment Installation Realisation Solutions Benefits
More info
39
beinghuman.com.au • Prosci Webinars • Change Community of
Practice Webinars • Free Change
Conversations Seminars
“Life comes at us in waves. We can't predict or control those waves, but we can learn to surf.”
Dan Millman